Malaysia Industrial Output Growth Picks Up in August

Industrial production in Malaysia rose by 5.0% year-on-year in August 2026, accelerating from a 4.7% gain in the previous month, which was the softest increase since March. The faster growth was driven largely by higher production in the manufacturing sector, rising to a four-month high of 7.4% from 6.4% in July. The manufacturing subsectors which contributed the most to the increase were electrical & electronics products (17.0% vs 13.3%), petroleum, chemical, rubber & plastic products (2.6% vs 1.7%), and non-metallic mineral products, basic Metal & fabricated metal products (5.7% vs 5.9%). Electricity output also climbed 9% from 5.5% in the prior month. In contrast, mining activity (-7.4% vs -3.2%) declined further, due to lower production for crude oil and condensate (-12.2% vs -13.1%) and natural gas (-4.3% vs 3.6%). On a seasonally adjusted monthly basis, industrial output grew by 0.5%, rebounding from a 0.1% fall in July.

Industrial production in Malaysia increased by 4.7% year-on-year in July 2026, easing from a 6.5% rise in the previous month and below market forecasts of 5.4%. It was the softest increase in industrial production since March, due mainly to softer rises in manufacturing (6.4% vs 7.3%), driven by lower production of transport equipment and other manufactures (4.5% vs 9.4%), petroleum, chemical, rubber & plastic (1.7% vs 2.6%), and electrical and electronics products (13.3% vs 13.6%). Meanwhile, electricity output also eased to 5.0% from 6.7%. Additionally, mining fell (-3.2% vs 3.1%), as crude oil and condensate output declined at a faster pace (-13.1% vs -3.3%), while gas production eased sharply (3.6% vs 7.4%). For the first seven months of the year, industrial production grew 5.7% yoy, driven by manufacturing (6.5%), electricity (6.1%), and mining (2.0%). On a seasonally adjusted monthly basis, industrial output edged down 0.1% in July, following a 0.5% fall in the preceding period.

Industrial production in Malaysia rose by 6.5% year-on-year in June 2026, slowing from an 8.4% increase in the previous month, which had marked the strongest growth since September 2022. Production softened significantly in the mining sector, rising just 3.1% after a 19.8% surge in May, as crude oil and condensate output recorded a further decrease (-3.3% vs -0.7%), while growth sharply eased for natural gas production (7.4% vs 37.4%). In contrast, manufacturing activity continued to drive output growth (7.3% vs 6.6%), driven by higher production for wood products, furniture, paper products, and printing (5.7% vs 3.8%) and transport equipment and other manufactures (9.4% vs -4.8%). Additionally, electricity generation increased at a faster pace, up 6.7% from 4.8% in the previous month. On a seasonally adjusted monthly basis, industrial output dropped by 0.5% in June, slipping further from a 0.3% fall in the preceding period.